Going on almost two years after the financial crisis, which Canada seems to have escaped almost entirely “unscathed”, consumer debt is sky high and still climbing.
The IMF warns Canada again that its consumer debt and poor housing market affordability pose risks to its otherwise positive outlook. Read about it here in the Globe and Mail.
Few Canadian’s realize that we Canucks rank among the most prolifigate spenders and credit card abusers in the entire world! While we’ve inherited this position from the US, its astounding to me that so many people here haven’t gotten the message.
While its true our market may be more “sound”, and all that, the truth is we’re riding high on a commodities boom that could just as easily turn to bust.
Second mortgages provide a cost effective way to access your home equity, without having to absorb a hefty penalty with your bank.
One thing is for sure, however. When your disposable income doesn’t significantly exceed your monthly costs, the only way to get ahead sometimes is to reposition your personal balance sheet.
If more Canadians though of their personal finances like a personal enterprise, we’d all be a lot better off for it.
